All Forum Posts by: Chris Winterhalter

@Mark Shelstad I'm looking for solid local/regional banks for balance sheet lending.   Local banks that are actively lending on the rehab portion would be preferred.  However a typical A&D or A&C loan might have two loan components at closing (one for the acquisition and one for the rehab component).  And typically the construction loan would turn to a perm loan after 12 months depending on the construction timeframe.  And yes it's owner occ (because my wife and I would be living there) which may or may not mean anything to the lender, however it's more common to have owner occ in the city on something like a storefront + 3 apartments on a commercial loan than it is outside of the city.  

So looking for active local/regional banks that are lending in that $2MM and under category and have potentially provided rehab funds on projects.  

Looking for local, regional bank for owner occ portfolio loans 2-8 units, maybe commercial storefront for properties in West Loop, West Town, South Loop, Pilsen, Old Town, Lincoln Park, River West etc.  Any recommendations would be greatly appreciated!  

My wife and I are looking for a value add owner occupied property, loft/condo, or SFR 1-4 in the City. Our locations are somewhat difficult to find value add/rehab opportunities but I'm hoping we can link up with a good agent with market and investor expertise.

Our net is essentially the core of the city...

North - we don't want to go north of Old Town or Lincoln Park 

West - we don't want to go west of the West Loop 

South - We don't want to go south of the South Loop

We currently live in the West Loop and love the neighborhood however I'm concerned any type of deal will be difficult to find.  Any recommendations for agents in these areas would be appreciated!  

Thanks,

Chris 

@Manolo D.

The MEP piece is not really in the guest rooms but rather the public space.  We are moving a bar/restaurant area from a separate wing and are demoing out a set of guest rooms and public space to open up a lobby, new kitchen, bar, restaurant etc.  Quite a bit of structural work as well.  When you state you do all MEP in-house are you fully licensed across all of those trades?  Send me an email and we can chat about the project further.  I have the full set of bid plans and the project has already been submitted to the city.  

@Kevin FoxThanks for the reply.  So "Good Size" would potentially mean $50-200k depending on the trade etc.  It's a good size project but can be handled by small commercial subs that have experience in hospitality/TI/hotel work.  Any recommendations would be appreciated!  I will shoot a PM to connect.  

We are working on a good size hotel project in San Diego (La Mesa, CA) and are looking for small-mid size mechanical, electrical, and plumbing subs.  These are potentially good size contracts for MEP subs with the right experience.  Any recommendations would be greatly appreciated!  We are also looking for another Fire/Life/Safety company for the sprinkler and alarm portions.  

Thanks!

Chris 

We are looking for a new bank for our construction and real estate companies in the City of Chicago.  Specializing in commercial construction and real estate financing is a must.  Ideally the banks sweet spot would be small businesses with annual revenues of 5-25MM.  

Any recommendations would be greatly appreciated!  

Chris 

@Joe Trometer

Thanks for the input!  Larger trees are a pretty good idea to give the building/yard some dimension.  

@Roy N. Sounds good! 

@Roy N.

I would love to see a picture of your building if possible.  I've had several people recommend green/earth tones that I thought would look good however they haven't really seemed to pop.  The pinkish brick definitely makes it more difficult.  Thanks!

@Andrew Davis

I second @Wayne Brooks on the rehab costs.  Even on the back of napkin underwriting think about this...

4 decent size rent readies - 5k/each = 20k 

+

Appliances, paint, & carpet on 60 units = $1,500-3k/each = 90-180k

I would say you are at a minimum 200k without any other items.  You can make money in C class rentals however you need to be careful with underestimating rehab costs & the operating costs of this type of tenant base.  Most people fail at one or the other (or both).  And they end up with expense creep from on-going repairs (low or no cash flow) or don't realize the cost of operations (which hurts cash flow).  

If it's a solid deal in a good C class area in a stabilized or growing area then the numbers listed should work with a larger rehab. 

BP'ers we are working on syndicating a 74 unit apartment complex in Cincinnati.  It's your typical 50's-60's brick utilitarian type construction.  We are trying to spruce it up (cost effectively) and need some help with color selection.  We've tried a ton of color options however nothing seems to work well with the pinkish brick.  I've attached one of the existing buildings and our most recent rendering.  I would like to keep the paint scheme to two colors...thoughts?  The stone wainscoting can also be tweaked as well.  Thanks!